Judge rules out arbitration for unpaid Clico commissions, pensions

THE High Court has ruled that a long-standing claim for unpaid commissions and pensions against Colonial Life Insurance Co (Trinidad) Ltd (Clico) will proceed in court rather than through arbitration.

Justice Ricky Rahim delivered the decision on July 25, holding that fairness now outweighs the insurer’s request to send the matter back to arbitration.

Myron Rudder, trading as Myron Rudder Agency, and Barbara Kanhai, trading as St Clair Financial Services, allege they are owed significant sums dating back over 12 years, a period marked by legal stalemate and regulatory intervention.

The dispute traces back to 2009, when the Central Bank assumed control of Clico and a 2011 amendment to the Central Bank Act froze all creditor claims. That restriction was only lifted in December 2022, allowing the High Court case to resume in mid-2024.

Clico sought to have the claim struck out as an abuse of process, arguing that earlier arbitration-related proceedings filed by the claimants were still before the courts. Justice Rahim dismissed this, ruling that the consolidated claim merely reflected the claimants’ updated knowledge of amounts owed.

The insurer also pushed to enforce arbitration clauses in contracts signed in 2000 and 2001. While acknowledging that arbitration was originally intended as a faster, less costly alternative, the judge held that the 12-year delay and change in circumstances would now leave the claimants at a “gross disadvantage” if forced back into arbitration.

Attorneys Kenneth Shawn Mahase and Mikkell Samaroo represented the claimants. Neal Bisnath and Lydia Mendonca appeared for Clico.